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HomeNewsGlobal NewsEconomic Indicators: US Inflation Data, Foxconn's Confidence, and TikTok Ban Speculation Steer...

Economic Indicators: US Inflation Data, Foxconn’s Confidence, and TikTok Ban Speculation Steer Market Course.

Economic Indicators

Dow futures were 135 points, or 0.4%, higher, S&P 500 futures 18 points, and Nasdaq 100 futures 95 points.

U.S. market futures indicate to a stronger open as investors await the latest inflation measure, the last big data before next week’s Federal Reserve meeting. Foxconn predicts a good year, but TikTok faces more congressional scrutiny.

 PPI to measure inflation next


Thursday, investors will watch the February producer price index for U.S. inflation.

This announcement will be closely watched after Tuesday’s hotter-than-expected CPI print raised worries about a June Federal Reserve rate decrease.

The PPI monitors inflation from the manufacturer or service provider’s perspective and is a leading indicator for the consumer price index.

In February, it is predicted to grow 0.3%, an annual rise of 1.1%, while the core annual number, which includes volatile food and energy costs, is likely to decline to 1.9% from 2.0%.

The CPI grew 0.4% last month after rising 0.3% in January, according to Tuesday statistics. Annually, it jumped 3.2% after rising 3.1% in January.

This indicated inflation stickiness, which might be a concern for the Fed before next week’s meeting, when it is likely to hold rates as it digests economic data.

US political pressure on TikTok

On Wednesday, the U.S. House of Representatives decisively backed a bill giving Chinese company ByteDance six months to sell TikTok or risk a ban.

The bill is the latest in a string of Washington measures to address national security worries about China. Many lawmakers don’t want to seem soft on China during an election year.

The bill now comes to the Senate, where senators are more split on the issue, especially with 170 million Americans using the popular app.

After President Joe Biden signs the measure, the business has 165 days to sue, as he promised last week. Last week, TikTok CEO Shou Zi Chew stated it would if needed.

President Donald Trump tried to ban TikTok and Chinese-owned WeChat in 2020, but the courts prevented him.

2024 is good for Foxconn


Foxconn, a supplier to Apple (NASDAQ:AAPL), reported a big increase in fourth-quarter earnings Thursday despite a drop in revenue and an optimistic prognosis for the year due to rising demand for AI servers.

Despite revenue falling 6%, the Taiwanese business reported a 33% increase in fourth-quarter net profit, with consumer electronics like smartphones accounting for 58% and cloud and networking equipment like servers contributing 20%.

Foxconn, formerly Hon Hai Precision Industry Co Ltd (TW:2317), earlier predicted slowness in the first quarter but said Thursday that 2024 sales will rise dramatically.

The world’s largest contract electronics producer supplies Apple, which last month reported sales and earnings that topped Wall Street projections despite China sales missing analysts’ targets.

Economic Calendar

8:30 Initial Jobless Claims
8:30 Producer Price Index
8:30 Retail Sales
10:00 Business Inventories
10:30 EIA Natural Gas Inventory
4:30 PM Fed Balance Sheet

Other Key Events:

  • Barclay’s Global Healthcare Conference, 3/12-3/14, in Miami, FL
  • JP Morgan Industrials Conference, 3/11-3/14, in New York
  • JP Morgan Gaming, Lodging, Restaurant and Leisure Forum, 3/14-3/15, in Las Vegas, NV
  • Truist Texas Bank Summit (one day), in Dallas
  • China House Prices Y/Y for February

Must read book about investing – check here Tech Stocks Surge Tech Stocks Surge Tech Stocks Surge

U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.

Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.

U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.

Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.

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